SÃO PAULO, 17 Dec (Reuters) – The São Paulo stock exchange experienced a new negative correction this Wednesday, marked by the expiration of options on the Ibovespa and the future index, while investors continue to speculate on the next interest rate movements in Brazil and the United States and monitor the national electoral scenario.
At around 12:30 pm, the Ibovespa, a reference for the Brazilian stock market, fell 0.84%, to 157,241.05 points. At the session low, it reached 156,350.81 points. At its maximum, it recorded 158,610.62 points. The financial volume totaled R$12.05 billion.
For the year, the Ibovespa still accumulates an increase of more than 30%.
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The news has endorsed doubts about the movements of central banks in Brazil and the USA at the beginning of next year and corroborated some profit-taking movements at B3, but the prospect of falling interest rates in both economies throughout 2026 persists, favoring Brazilian shares.
“It is true that the impulse coming from the USA should be smaller, as the expectation is that interest rates will remain stable in the first half of 2026, but the drop in interest rates in Brazil may be enough to continue boosting local markets”, assess strategists at BTG Pactual.
Even with expectations of greater volatility in the electoral scenario in Brazil only next year, from the end of the first quarter, the news about potential opposition candidates occupied the attention, mainly signs that Flávio Bolsonaro (PL) should even run for Planalto.
Investors fear a split in the opposition with the entry of Flávio Bolsonaro, which could reduce the chances of an eventual victory over Lula. One of the hopes in the market with a change in Brasília is an improvement in the country’s fiscal framework, given the growing trajectory of public debt in relation to GDP.
HIGHLIGHTS
- DIRECTIONAL ON (DIRR3) it fell 4.93%, amid the increase in DI contract rates, in addition to a JPMorgan report, reiterating a neutral recommendation for the action, citing “valuation” and limited “upside”. In the sector, MRVE&CO ON (MRVE3) rose 0.87%, with analysts at the North American bank raising the stock’s recommendation to “overweight”, expecting a “bullish” recovery in 2026.
- BTG PACTUAL UNIT (BPAC11) lost 3.59%, the worst performance among Ibovespa banks on the day, while BRADESCO PN (BBDC4) yielded 1.3%, SANTANDER BRASIL UNIT (SANB11) fell 1.04%, BANCO DO BRASIL ON (BBAS3) fell 1.11% and ITAÚ UNIBANCO PN (ITUB4) showed a decrease of 0.61%.
- AXIA ENERGIA ON (AXIA3) fell 1.93%, in the second session followed by a fall in the shares of the former Eletrobras. The electricity company will hold a shareholders’ meeting on Friday to decide on proposals that will allow the distribution of part or all of its profit reserves, which totaled R$39.9 billion at the end of the third quarter.
- BRAVA ENERGY ON (BRAV3) it advanced 3.27%, on a day of high oil prices abroad and with agents paying attention to the news about investor interest in the company’s assets. The oil company’s financial director, Luiz Carvalho, also stated that the company plans to invest US$550 million in 2026, two thirds of which will be in its expansion strategy, which foresees the drilling of four wells between 2026 and 2027, and the remainder in maintenance.
- PETROBRAS PN (PETR4) rose 0.62%, accompanied by peers in the sector, amid rising oil prices. The Single Federation of Oil Workers (FUP) also announced that the state-owned oil workers’ strike reached 100% participation on the Campos Basin platforms. Petrobras said that, so far, there has been no impact on production. In the sector, PRIO ON (PRIO3) had an increase of 1.48% and PETRORECONCAVO ON (RECV3) registered an increase of 1.54%. Abroad, Brent advanced 1.68%.
